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As I understand it, the intent of the law is to prevent non-financial people from losing thousands or more on random scams (e.g. ICOs, actual snake-oil, etc.)
by derivagral 6y ago
As I understand it, the intent of the law is to prevent non-financial people from losing thousands or more on random scams (e.g. ICOs, actual snake-oil, etc.)
The result of the law is... less clear.
- tastyfreeze 6y agoThere are many laws in regards to investment that are like that. Laws that "protect" inexperienced investors from getting had. I understand the intent but I feel the result is undesirable. They restrict investment opportunities to people that already have money. The message that they give is that just because you dont have dollars you dont have any financial sense.
- wtvanhest 6y agoIn the vast majority of cases, the good investment opportunities are already restricted to people with substantial assets or income. The vast majority of 'investment' opportunities available to people without substantial assets or income are scams, or very likely to underperform investments. Even in SV, VCs are feverishly competing to get their investments accepted by the best companies. The law may feel counterintuitive, but is a good investor protection that needs to be in place.
- londons_explore 6y agoAnyone determined can get the required status to invest in accredited investor things... It just takes some determination - take the Series 65 exam and become an RIA - you only need to get ~70% of the multiple choice questions correct!
- DennisP 6y agoIn fairness that just changed in August. Before that you had to be a millionaire or make $200K/year.